It's nice to think that the Chairman and CEO of Six Apart would, indeed, feel mortified over this screw up, and that maybe, just maybe, things might be re-thought in regards to the "star chamber" that has been the tradition of the LJ Abuse Squad!
While it is probably true that this whole episode was triggered by the vile dominionist theocrats of the "Warriors for Innocence" cabal targeting the LiveJournal advertisers (who then put the pressure on Six Apart) when their bully-boy tactics didn't elicit an immediate response from L.J. (making L.J. ethically no different than Google bending over for the PRC), it's nice to see that L.J. is now at least putting a "(what) a reasonable person would think" test in place for considering whether a particular illegal (or reasonably close thereto) subject is being actually promoted by a journal, or being dealt with from concern, in satire, or even for simple shock value.